Best LSE Transport Dividend Picks For The Day
Transport and automobile names generally suffer from deep cyclicality which can affect companies operating in areas ranging from airfreight and logistics to infrastructure. Hence, considering economic volatility crucial when thinking about these companies’ profitability. Availability of cash flows also determines the level of dividend payout. In times of growth, these transport companies could provide opportune income through dividend. I’ve made a list of other value-adding dividend-paying stocks in the transport and automobile industry for you to consider for your investment portfolio.
Royal Mail plc (LSE:RMG)
RMG has a great dividend yield of 5.66% and distributes 64.68% of its earnings to shareholders as dividends . Besides the potential capital gains, RMG’s yield alone is better than the low risk savings rate. Plus, a 5.66% yield places it amidst the market’s top dividend payers.
BBA Aviation plc (LSE:BBA)
BBA has a sizeable dividend yield of 2.91% and the company has a payout ratio of 68.08% . While the yield has dropped at times in the last 10 years, dividends per share during this time have increased overall from $0.0725 to $0.1275. Over the past 12 months, BBA’s ROE of 10.53% outperformed the Global Transportation Infrastructure industry, which averaged a 11.04% return.
Stagecoach Group plc (LSE:SGC)
SGC has a juicy dividend yield of 7.40% with a large payout ratio . SGC’s dividends have increased in the last 10 years, with DPS increasing from £0.0513 to £0.119. It should comfort existing and potential future shareholders to know that SGC hasn’t missed a payment during this time. Analysts are expecting an impressive triple digit earnings growth over the next three years.
For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
